6 little-known income tax deductions

6 little-known income tax deductions

There is more to tax deductions than Section 80C. These six can help you optimise your tax savings.

You might have already submitted your tax saving and investment declaration to your employer. But, are those the only deductions available to you?

The answer is NO.

You will have a second chance to claim further deductions when you actually file your tax returns. While doing this, you can also claim those deductions which you might have missed communicating to your employer.

Here are six lesser known deductions which you can make use of for tax filing process:

1. Section 80G

Income Tax Act provides an opportunity to claim deduction on charities to certain recognised organisations.

You can claim anywhere from 50 to 100 per cent of such donations u/s 80G of the Income Tax Act. Hence, you can check if the list of recognised institutions includes your donated institution too.

6. Section 80GG

This is another lesser known deduction available in the Income Tax Act.

It is a section available exclusively for those who do not receive HRA from their employer. You can claim deduction up to Rs 2,000 per month.

It is also available for self-employed people.

Conclusion

Most of the people concentrate on sections like 80C and ignore many other sections. Hence, before filing your taxes, carefully list down all the deductions available in the Income Tax Act for individuals and then take the full benefit of all these sections.